Representative Jeff Landry (R-LA) introduced a bill on August 3 that would create farm savings accounts for dairy farmers, as well as other producers. IDFA supports the Commercial Fishing, Farm, and Ranch Risk Management Act, H.R. 6276, because these accounts are an example of a risk management tool that will help dairy farmers and have minimal impact on dairy markets. IDFA sent a letter to Landry today thanking him for introducing the bill.
"These accounts would provide a valuable service to farmers who are trying to weather the tough times," said Jerry Slominski, senior vice president of legislative affairs and economic policy for IDFA. "Farm savings accounts can help dairy farmers manage price volatility, and we commend Representative Landry for introducing this bill."
The bill creates a tax-free account in which farmers may place up to 20 percent of their taxable income in a given year. The funds must be used within 10 years after they are placed into the account. This allows farmers to set aside funds to use during a period of low dairy prices. Their use was included in the recommendations by the U.S. Department of Agriculture's Dairy Industry Advisory Committee (DIAC), as well as in IDFA’s dairy policy positions adopted in May of 2011.
Members with questions about farm savings accounts may contact Ruth Saunders, IDFA vice president of policy and legislative affairs, at email@example.com or (202) 220-3553.